The Arab Times reports that the Kuwaiti government is refusing to recognise bitcoin as a viable currency, and bans its financial institutions from trading it, even in the light of the current rise in Bitcoin value. Sources in the Ministry of Finance state that the Central Bank of Kuwait forbids trading of bitcoin by its financial institutions and associated bodies, since it cannot be regulated, so transgressors can\'t be punished.

The surge in bitcoin trading has apparently attracted a lot of Kuwaiti consumers to the market, and the bank has already issued general warnings about the risks of internet trading with digital currencies.

On the other hand, the Central Bank of the UAE said earlier in 2017 that its virtual currency regulatory framework did not apply to bitcoin, and it has not prohibited trading. Dubai has been proactive in embracing the technology, instigating its own Blockchain Strategy in October 2016 in response to increased tourism and trading activities.

Dubai maintains that it places the happiness of its people foremost, and that by embracing new technologies it can create a sharing network across the world that will cement its government, industry and leadership connections. Dubai is busy initiating blockchain principles in these three key areas.